The text directs Hawaii’s Office of Wellness and Resilience to cancel medical debt for residents who meet income or debt limits, beginning with debt already acquired for 50,016 residents.
The office is to run a program to cancel medical debt for residents who meet either an income limit or a debt-to-income test. The program begins with debt already acquired for 50,016 Hawaii residents.
Information collected for the program must follow state and federal privacy rules and may be used only for debt relief or related support.
The office must report to lawmakers on program progress and relevant steps other states took to address medical debt.
The Office of Wellness and Resilience is to run a program that acquires and cancels eligible residents’ medical debt. The program covers Hawaii residents whose household income is at or below 400 percent of the federal poverty level, or whose medical debt is at least 5 percent of household income. The office is appropriated $500,000, or as much as needed, for fiscal year 2026–2027. It may also receive other state, private, or federal funds. The office must contract with an organization that holds medical debt from Hawaii residents and has succeeded in helping governments work with hospitals and health systems to cancel debt. The text sets July 1, 2026, as the effective date and provides funding for fiscal year 2026–2027.
The office must protect identifying and health information collected for the program and limit how it is used. The rule covers personal identifying information and protected health information collected for the program. The information may be used only to acquire and cancel debt or to provide financial education, help enrolling in insurance, preventive measures, or similar support.
The office must report to the Legislature on the program and related actions in other states. The Office of Wellness and Resilience must send the reports to lawmakers. Reports must cover program progress and relevant actions other states took in the prior year, including steps to keep medical debt off credit reports. Each report is due no later than 20 days before a regular legislative session.
No hearings or votes scheduled.